Is Adobe Stock (ADBE) a Good Investment?

By AAII Staff
April 01, 2026
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Learn more about whether Adobe Inc. is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (ADBE) grades on certain investment factors and determine whether it meets your investment needs.

Latest Adobe Inc. Stock News

As of March 31, 2026, Adobe Inc. had a $98.3 billion market capitalization, putting it in the 97th percentile of companies in the Software industry.

Currently, Adobe Inc.’s price-earnings ratio is 14.2. Adobe Inc.’s trailing 12-month revenue is $24.5 billion with a 29.5% profit margin. Year-over-year quarterly sales growth most recently was 12.0%. Analysts expect adjusted earnings to reach $23.548 per share for the current fiscal year. Adobe Inc. does not currently pay a dividend.



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Grading Adobe Inc. Stock

Before you choose to buy, sell or hold Adobe Inc. stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (ADBE) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Adobe Inc.’s stock grades for value, growth and quality. Learn more about A+ Investor here!

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Adobe Inc. Stock Quality Grade

Quality Grade:

Metric Score ADBE Sector Median
Return on Assets (ROA) 97 24.2% 0.7%
Return on Invested Capital (ROIC) 99 781.6% 18.4%
Gross Income to Assets 96 73.6% 25.7%
Buyback Yield 93 6.0% (2.0%)
Change in Total Liabilities to Assets 38 4.8% 2.0%
Accruals to Assets 77 (11.1%) (6.6%)
Z Double Prime Bankruptcy Risk (Z) Score 89 10.90 5.92
F-Score 94 8 5

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Grade is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Adobe Inc. has a Quality Score of 99, which is Very Strong.

Adobe Inc. Stock Momentum Grade

Momentum Grade:

Metric Score ADBE Sector Median
Relative Price Strength (Q1) 15 (27.2%) (8.0%)
Relative Price Strength (Q2) 53 (3.1%) (10.6%)
Relative Price Strength (Q3) 23 (16.6%) (2.1%)
Relative Price Strength (Q4) 44 (7.4%) 1.6%
Relative Price Strength (weighted 4 qtr) 13 (16.3%) (1.4%)

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Adobe Inc. has a Momentum Score of 13, which is Very Weak.

Adobe Inc. Stock Earnings Estimate Revisions Grade

Estimate Revisions Grade:

Metric Score ADBE Sector Median
Quarterly Surprise SUE Latest Qtr 96 11.3 2.0
Quarterly Surprise SUE Prior Qtr 64 2.3 2.3
EPS Est Current Year % Rev Last Month 71 0.2% 0.0%
EPS Est Current Year % Rev 3 Mos 53 0.2% 0.6%

The Earnings Estimate Revisions Score considers the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. The Earnings Estimate Revisions Score is based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Adobe Inc. has an Earnings Estimate Revisions Score of 71, which is Positive.

Other Adobe Inc. Stock Grades

In addition to Momentum, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Growth.

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Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower—growth companies. AAII measures several dimensions of growth in its Growth Grade, including year—over—year increases in sales and earnings, long(er)—term historical sales and earnings growth rates and analyst‐forecasted long—term earnings growth.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Adobe Inc.’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.

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Should I Buy Adobe Inc. Stock?

Overall, Adobe Inc. stock has a Quality Grade of A, Momentum Grade of F Earnings Estimate Revisions Grade of B.

Whether or not you should buy Adobe Inc. stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.

Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Adobe Inc. stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.

Adobe Inc. (ADBE) Competitors

Companies similar to Adobe Inc. in the Software industry.

Company name Ticker Market Cap
Cadence Design Systems, Inc. CDNS $76.72Bil
CrowdStrike Holdings, Inc. CRWD $99.01Bil
ServiceNow, Inc. NOW $109.36Bil
Palo Alto Networks, Inc. PANW $130.82Bil
Intuit Inc. INTU $119.57Bil

Adobe Inc. Stock: Bottom Line

You can use the information about how Adobe Inc. is graded to determine if you should invest in this stock. However, you should decide whether Adobe Inc.’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

So, if you’re still on the fence about whether Adobe Inc. is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.

A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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